According to the most recent Global Renewable Energy Country Attractiveness Indices Report (CAI), China will continue to dominate the global renewable energy market. The country has quadrupled its solar capacity target to 50GW by 2020. At the top of the All Renewable Index (ARI), China will have to overcome some challenges including oversupply of wind turbines and solar panels as well as solve many grid transmission issues to reach its goal.

While China’s score is on the rise, America’s score is going downward. The U.S. dropped 1.5 points to share in second position with Germany. The decline was caused by ongoing uncertainty in U.S.’s long-term energy strategy and a failure to indicate if there will be an extension to the Production Tax Credit for wind projects. The rise in Germany’s score was a result of the government’s approach to addressing barriers to offshore wind development and stability in its solar market.

“While the U.S. and Germany markets are level within the ARI, the contrast between these two markets is evident. The upcoming elections have led to an understandable slowdown in the decision making process in the US, while Germany is pushing ahead with its ambitious renewable energy agenda — including the introduction of a new solar PV tariff and compensation for offshore grid connection delays,” explained Ernst & Young’s Global Cleantech Leader, Gil Forer.

He continued, “Having made positive progress, the challenge now facing Germany is making sure that the necessary infrastructure is in place to ensure the renewable power generated in the north of the country can be shipped to customers in the south. It is important for any country not only to focus on policies that support supply, but also on those that will encourage and simulate demand.”

Next on the leaderboard is India, who fell one point due to recent severe blackouts causing speculation that the country has not attracted enough private investment to modernize its power infrastructure. There are worries that the investments in renewable energy will also suffer due to an unreliable power grid.

Rounding out the top five is the UK who overtook Italy who fell due to worsening economic conditions. However, UK seems to be in the turbulent boat with general consensus that policy and subsidy announcements have fallen short of establishing transparency, certainty and longevity within the market.